Tuesday, October 05, 2010

Daily Market Commentary: Japan Drives Markets

Positive news from Japan put pressure on bears, leaving them running for cover as the past two days of weakness was consumed by strong buying.

The S&P was the big winner as it powered higher, clearing six days of tight trading. For now - at least - the pending MACD 'sell' is stalled.


via StockCharts.com

The Nasdaq negated a bearish sequence of days; pushing new highs on higher volume accumulation.


via StockCharts.com

The biggest winner on the day was Small Caps. Yesterday's losses had threatened the trading range breakout, but the breakout was restored today. Technicals remain strong.


via StockCharts.com

The Dow is back at channel resistance so is looking vulnerable to selling tomorrow. On the plus side, there was a 'Golden Cross' between 50-day and 200-day MAs.


via StockCharts.com

It's back to square one for bears, bulls can probably afford a couple of down days and still maintain control of the market. Look for a mild down day as today's gain is digested.

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